Aussie Businesses in Tungsten Space – THR, ARU, VML, SEI

  • Nov 23, 2019 AEDT
  • Team Kalkine
Aussie Businesses in Tungsten Space – THR, ARU, VML, SEI

When it comes to hardest metal in the metal community, Tungsten and its alloys are recalled in a flash. Tungsten is used in cemented carbides and used in the manufacturing of electrodes. One of the hardest metals, Tungsten is used by battery manufacturers. Tungsten is majorly found in the Western part of Australia- Tasmania and Queensland.

In the below article we will discuss four ASX-listed companies having their business presence in the Tungsten space.

YTD Returns of THR, ARU, VML, SEI (Source: ASX)

Thor Mining Plc

Thor Mining Plc (ASX: THR) is engaged in the development and exploration of tungsten as well as copper projects in Australia and USA.

Commencement of Field Pump Test

  • The company through a release dated 18 November 2019 announced that the Kapunda copper project in South Australia had begun commencement of the field pumping test (as advised by EnviroCopper Limited)
  • The testwork program is financed under the Australian Government Ministry for Science Jobs and Innovation with an amount of $2.85 million.

Preliminary Drilling Results at White Violet Bonya Project

  • THR, through a release dated 11 November 2019 announced positive preliminary results from the second round of drilling at the Bonya project White Violet deposit, near THR’s 100% owned Molyhil project, in the Northern Territory of Australia.
  • At the White Violet, 11 holes were drilled to wrap up the program for the deposit.

Also Read: Announcement for the acquisition of Pilbara Goldfields And Hamersley Metals.

THR closed the day’s trading session at a price of $0.005 per share on 22 November 2019. The market capitalisation of the company stood at $4.67 million. The total outstanding shares of the THR stood at 934.9 million, and its 52-week low and high is $0.004 and $0.036, respectively. The stock has generated negative returns of 61.54% and 68.75% in the past three months and six months, respectively.

Arafura Resources Limited

Arafura Resources Limited (ASX: ARU) is in the business of industrial minerals and minerals exploration. It is engaged in the Nolans Project engineering studies and Pilot Program.

121 Mining Investment Presentation

Recently, the company published a presentation, wherein it communicated about NdPr market opportunity and the Nolans Project:

  • The underlying demand for NdFeB magnets throughout all applications is expected to rise by 6% per annum by 2030.
  • The growth in demand of NdFeB demand for EV applications is more dramatic, likely to increase by 24% per annum.
  • ARU added that EV applications needs high quality as well as efficient motors using NdFeB magnets.
  • When it comes to Nolans project, the company stated that in February 2019 it wrapped up definitive feasibility study, which confirmed that the Project is a world class NdPr Project with capital expenditure amounting to US$726 million and low OPEX producer at US$25.94/kg NdPr.
  • It is well placed in order to feed forecast NdPr supply shortfall and aiming the project commissioning in 2022.
  • As per the quarterly activities report (quarter ended 30 September 2019), the development of the project execution control budget and schedule based on the cost-estimate and schedule developed in the DFS, has been scheduled to be finalised in Q4 CY19.

A Look at Quarter Ended 30 September 2019

  • In the quarter, the company invited prospective tenderers for expressions of interest for the contract packages such as Integrated project management team, Beneficiation plant, and Hydrometallurgical plant.
  • As at 30 September 2019, the cash reserves of the company stood at $24.9 million, which indicates that the company is in a strong position to advance the Nolans NdPr project.
  • The cash position has been increased due to the successful completion of its fully underwritten 7?for20 pro?rata non?renounceable entitlement offer.

ARU closed the day’s trading session at $0.092 per share on 22 November 2019, up by 1% from its previous closing price. The market capitalisation of the company stood at $96 million. The total outstanding shares were 1.05 billion, and its 52-week low and high is $0.040 and $0.140, respectively. The stock has generated returns of 35.8% and 33.7% in the past three months and six months, respectively.

Vital Metals Limited

Vital Metals Limited (ASX: VML) is involved in the exploration of minerals in Niger and Burkina Faso, West Africa.

Highlights of Activities in Q1 FY20

The company through a release dated 31 October 2019 updated the market with the activities for quarter ended 30 September 2019 (Q1 FY20) and outlined the following:

  • During the quarter, the company wrapped up the acquisition of Cheetah Resources Pty Ltd for transforming Vital into near term producer of REO and commenced early works program on Nechalacho REO project.
  • The conversion of the world class NI 43-101 149.3Mt at 1.42% REO to JORC resource is on track and VML has taken bulk sample affirms logistics chain.
  • Maiden infill drill program has been wrapped up on the North T Zone along with continued assaying of historically drilled diamond core.
  • The cash balance of the company stood at $8.68 million in the quarter.

Also Read: How Vital Metals Limited rose 12.5% on the release of quarterly results?

VML closed the day’s trading session at $0.013 per share on 22 November 2019. The market capitalisation of the company stood at $27.8 million. The total outstanding shares of the VML stood at 2.14 billion, and its 52-week low and high is $0.007 and $0.016, respectively. The company has generated returns of 30% and 18.18% in the past three months and six months, respectively.

Speciality Metals International Limited

Speciality Metals International Limited (ASX: SEI) is engaged in the production of tungsten from Mt Carbine mine located in far North Queensland.

Key Takeaways from AGM Presentation

Recently, the company conducted its Annual General Meeting for 2019:

  • The company stated that on 2 July 2019, it wrapped up the 100% acquisition of Mt Carbine Quarries Pty Ltd, an entity which owned and operated the Mt Carbine quarry as well as holds Mining Leases ML 4867 and ML 4919.
  • With respect to Chile, SEI added that significant geotechnical work had been finished by Santo Tomas University and its Chilean consultants on the Tamarugal Basin.
  • For the quarter ended 30 September 2019, the net cash outflows of the company reached at 1,217 million after settling major payables for development as well as administration and corporate costs.

Outlook

  • For 2019/2020, SEI plans to streamline the production from tailings retreatment as well as to focus on revenues.
  • SEI plans to focus on best practice, lower costs & improved recoveries in order to optimise revenues.
  • For the coming period, the company is planning to apply to Government Environmental Department for a major Amendment in Environmental Authority.
  • In 2019/2020, it would commence process for open-pit mining and to plan the development of quarry strategy.

Also Read: How SEI is performing in small-cap space with other companies?

SEI closed the day’s trading session at $0.053 per share on 22 November 2019, up by 1.9% from its previous closing price. The market capitalisation of the company stood at $51.1 million. The total outstanding shares of the SEI stood at 982.7 million, and its 52-week low and high is $0.010 and $0.060, respectively. The company has generated returns of 73.3% and 88.6% in the last three and six months, respectively.


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